E8-12 (Algo) Preparing Production, Direct Materials Purchases Budgets [LO 8-3b, c] Croy Incorporated has the following projected sales for the next five months: Month April May June July August Sales in Units 3,400 3,815 4,620 4,125 3,950 Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $3.30 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,608 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Please do not give solution in image format thanku 

E8-12 (Algo) Preparing Production, Direct Materials Purchases Budgets [LO 8-3b, c]
Croy Incorporated has the following projected sales for the next five months:
Sales in
Units
3,400
3,815
4,620
4, 125
3,950
Month
April
May
June
July
August
Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct
materials cost $3.30 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next
month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,608 pounds.
Required:
1. Determine budgeted production for April, May, and June.
2. Determine budgeted cost of direct materials purchased for April and May.
Transcribed Image Text:E8-12 (Algo) Preparing Production, Direct Materials Purchases Budgets [LO 8-3b, c] Croy Incorporated has the following projected sales for the next five months: Sales in Units 3,400 3,815 4,620 4, 125 3,950 Month April May June July August Croy's finished goods inventory policy is to have 50 percent of the next month's sales on hand at the end of each month. Direct materials cost $3.30 per pound, and each unit requires 2 pounds. Direct materials inventory policy is to have 50 percent of the next month's production needs on hand at the end of each month. Direct materials on hand at March 31 totaled 3,608 pounds. Required: 1. Determine budgeted production for April, May, and June. 2. Determine budgeted cost of direct materials purchased for April and May.
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education